MKT Exam 2 Review Q's 2

Lifebelt Insurance sells insurance only through its door-to-door salespeople. What type of marketing channel does Lifebelt use? a) inclusive b) multitiered c) indirect d) direct e) selective

d

Consumers who have no past experience with a product are especially likely to judge it by its price. a) True b) False

a

For which of the following would a company use an exclusive distribution strategy? a) luxury cars b) newspapers c) chewing gum d) dairy products e) soft drinks

a

Producers use intermediaries because they create greater efficiency in making goods available to target markets. a) True b) False

a

With which of the following strategies would a company give only a limited number of dealers the right to distribute its products in their territories? a) exclusive distribution b) extensive distribution c) moderate distribution d) primary distribution e) intensive distribution

a

A(n) ________ marketing system consists of producers, wholesalers, and retailers acting as a unified system. a) horizontal b) vertical c) multitiered d) communal e) equilateral

b

Conflict which occurs among firms at the same level of the marketing channel is known as ________ conflict. a) multitiered b) horizontal c) vertical d) equilateral e) exterior

b

In segmented pricing, the difference in prices is based on differences in costs. a) True b) False

b

The Bookworm began delivering books directly to customers through mail instead of selling through "brick-and-mortar" companies. This is an example of ________. a) indirect marketing b) disintermediation c) franchising d) exclusive distribution e) intensive distribution

b

The greater the number of channel levels in a marketing channel, the ________. a) less distance between producer and end-consumer b) greater the channel complexity c) less time it takes for products to reach end-consumers d) greater the control producers have over the distribution of their products e) greater the control producers have over the demand of their products

b

Thinking Cap Corp. prices its various cap designs at different price levels, ranging from $2.05 to $5.95. This is an example of optional product pricing. a) True b) False

b

When KFC came into conflict with its franchisees over the brand's "Unthink KFC" repositioning, which emphasized grilled chicken over its traditional Kentucky fried chicken, KFC experienced ________ conflict. a) equilateral b) vertical c) multitiered d) communal e) horizontal

b

When a seller requires its dealers to abstain from handling competitors' products, it is called ________. a) subjective distribution b) exclusive dealing c) selective distribution d) exclusive pricing e) disintermediation

b

Which of the following is NOT a major logistics function? a) inventory management b) product designing c) warehousing d) transportation e) packaging

b

Which of the following is a disadvantage of adding new channels in a multichannel distribution system? a) decreasing complexity of markets b) decreasing control over the system c) reducing opportunities for franchising d) lowering sales and market coverage e) minimizing publicity needs

b

Which of the following is true of conventional distribution channels? a) Channel members have complete control over each other. b) Channel members seek to maximize their own profits. c) Channel conflict is governed by formal mechanisms. d) Channel members are assigned roles according to a clearly defined framework. e) Channel members work exclusively for the good of the organization.

b

________ distribution is a strategy in which producers of convenience products and raw materials stock their products in as many outlets as possible. a) Direct b) Intensive c) Inclusive d) Exclusive e) Selective

b

________ management refers to the management of upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers. a) Cross b) Supply chain c) Price d) Product cycle e) Customer

b

________ play an important role in matching supply and demand by providing consumers with a broad assortment of products in small quantities. a) Virtual banks b) Intermediaries c) Price consultants d) Uniform-delivery networks e) Upstream partners

b

A ________ is a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user. a) product line b) product delivery network c) marketing channel d) consumer base e) resource bank

c

If a large retailer sold numerous items below cost with the intention of punishing small competitors and gaining higher long-run profits by putting those competitors out of business, the retailer would be guilty of ________. a) price collusion b) price fixing c) predatory pricing d) competitive pricing e) penetration pricing

c

Plasticine Palace supplies its products exclusively to Arts & Crafts, a chain of stationery stores across the country. The chain then makes the plasticine available to end-consumers. This is an example of ________. a) a direct marketing channel b) intensive distribution c) an indirect marketing channel d) disintermediation e) extensive distribution

c

When a competitor cuts its price, a company should ________ if it believes it will not lose much market share or would lose too much profit by cutting its own prices. a) reduce its production costs b) reduce its marketing costs c) maintain its current prices and profit margin d) increase its marketing budget to raise the perceived value of the product e) increase its production costs to improve the quality of the product

c

When sellers set prices after talking to competitors and engaging in collusion, they are involved in ________. a) interstate commerce b) comparative pricing c) price fixing d) skimming pricing e) price bundling

c

________ occurs when a seller states price savings that are not actually available to consumers. a) Comparative pricing b) Scanner fraud c) Deceptive pricing d) Market skimming e) Price collusion

c

________ occurs when product or service producers cut out intermediaries and go directly to final buyers or when radically new types of channel intermediaries displace traditional ones. a) Extensive distribution b) Multichannelization c) Disintermediation d) Inclusive distribution e) Cross merchandising

c

Which of the following is true of FOB-origin pricing? a) It is a strategy in which the company charges the same price plus freight to all customers. b) It is a costly option for customers who are located near the company. c) It charges all customers the freight cost from a base city to the customer location. d) It is an expensive alternative for customers in distant locations. e) It is a strategy in which the seller absorbs all or part of the freight charges.

d

Whitelight stocks its toothpastes in all convenience stores across the country. This is an example of ________ distribution. a) exclusive b) selective c) hybrid d) intensive e) normal

d

Managers at the Imperial Hotel-Chicago complained that the chain's overall image was hurt because Imperial Hotel-Dallas was overcharging guests and providing poor service. The Imperial Hotel was experiencing ________ conflict. a) equilateral b) vertical c) multitiered d) communal e) horizontal

e

Movie Giants offers DVD rentals through its Web site. It also offers DVD rentals via Star City stores. This is an example of a(n)________ distribution system. a) conventional b) inclusive c) intensive d) extensive e) multichannel

e